Are customers a financial institution's number one priority? Or have banks become too obsessed with market share while watching as customer numbers continue to dwindle? Creating a competitive advantage means taking another look at customers. Focusing the solutions that institutions offer customers, based on what they want and need, is an important first step.

It is absolutely critical for banks to get closer to their customers, but they are finding this a troublesome task because banks tend to run so many different systems and databases. The risks for financial institutions are high, with competition coming from both within and outside the industry. Non-banks such as independent service providers and telecom firms are threatening the industry by seeking additional revenue streams from their core services and enabling customers to bypass the banking system. How financial institutions create solutions in this environment is key to getting ahead of the competition.

Providing integrated, multi-channel solutions that encompass several touchpoints and that offer value-added services enable financial institutions to excel, permitting reduced costs, better sales opportunities and increased loyalty from customers who appreciate convenient services at low cost, and. Companies that take advantage of the agility in these solutions are well positioned to compete.

An Independent Society
Financial institutions need to think long term and focus on being responsive to customers' situations. Customers are demanding the ability to do more for themselves, such as remote banking through the Internet and via mobile phones. Financial institutions must recognize this and build flexibility into their solutions. It's critical to be able to get new solutions to customers quickly, particularly solutions that tech-savvy customers want.

Keeping customers captive with a closed system that isn't integrated is short-sighted. Proprietary, closed-end systems put financial institutions at a severe competitive disadvantage. Integrating disparate channels and applications can be a challenge, but it is vital to attain more customers. Integrating solutions is not the destination; it is the journey towards improved customer service and better interaction with the customer. An integrated channel delivery offers increased loyalty from positive customer experiences, reduced costs and better opportunities to promote multiple touchpoints, such as more self-service options for your customers.

When financial institutions choose a multi-channel integrated solution, they can quickly realize return on investment from their branch automation system, allowing the costs to implement to decrease, and the return on investment to increase through increased revenues.

An Economically Weary Society
Financial institutions are not the only ones reeling from the evident economic downturn. Consumers are looking for banks that can give them convenient, reliable access to their accounts and other services at little or no cost. To appease customers, financial institutions must evaluate the benefits of self-service endpoints.

Banks can find several benefits from migrating more transactions and inquiries to other touchpoints, such as ATMs, the Internet and mobile phones. Self-service solutions can drive costs down by helping to minimize reliance on the teller line and the call center. Creating efficiencies at the institution's back office helps them automate operations like balance inquiries, transferring funds, purchasing prepaid minutes for mobile phones or paying bills.

In return, financial companies can cross-sell more products and services and use technology to reduce transaction costs while boosting a competitive advantage.

A Happy Medium
Divergent competitive pressure can make it difficult to maintain focus at some institutions. By offering a broader multi-channel integrated solution, financial institutions can use the creative strategies to rebuild competitive advantage. Customers will see seamless and personalized services -- financial institutions will see an increase in their revenues as well as great return on investments.